Becoming a C-PACE Lender

MTPACE operates an "open market" C-PACE program whereby property owners have the flexibility to select their preferred lender for a C-PACE project on their eligible property. The open market model gives property owners access to a range of private lenders who offer competitive rates and financing terms and conditions. 

Public funds are not anticipated to be made available for funding C-PACE projects, though units of government are not prohibited from participating as C-PACE lenders.

Why participate in MTPACE?

  • Offers an attractive new lending product to assist new and existing customers to fund needed commercial and industrial property building improvements.  
  • Potential for a pipeline of quality, investor-ready energy efficiency, renewable energy, and water conservation projects.
  • Opportunity to fund retrofit investments that can lower operating costs, raise property value, and improve building services that attract and retain tenants.
  • Consistent legal infrastructure, uniform program guidelines and standards, and cooperation with participating communities (The MFFA offers a single point of contact).

Frequently Asked Questions

All property owners must provide the written consent of an existing mortgage lender or other real property lienholder of record on the eligible property prior to closing. The lender consent must be given no more than three months prior to closing the C-PACE financing. The lender consent template that property owners need to complete is available. See the Program Guidelines for additional details.

Lenders may charge a market interest rate on C-PACE financings, plus applicable fees. The C-PACE lender should disclose this interest rate in its financing proposal made to the property owner.

The C-PACE financing term should not exceed the expected life of the proposed improvements as described in the energy assessment. For projects that include multiple improvements, the weighted average useful life of the new equipment must equal or exceed the term of the C-PACE financing. Depending on the equipment installed terms are often made for up to 20 years.

The property owner pays the assessment to their county as part of their property taxes.  The County then routes the payment to the Authority which then pays the Lender.

The C-PACE Statute establishes that a delinquent C-PACE tax assessment becomes a lien on the property, with same priority as a special assessment. Upon a default, the local government and the C-PACE lender would certify the amount of the delinquency to the MFFA, who would then work with the appropriate local government to place the amount of the C-PACE financing delinquency on the next available tax roll for collection pursuant to the existing statutory tax collection procedures.

Once the C-PACE Financing has been repaid in full according to the terms of the C-PACE Financing and Special Assessment Agreement, repayment of the Special Assessment installments will cease and the MFFA will record a termination of the C-PACE Financing and Special Assessment Agreement with the appropriate country clerk.